Home                     

Programs and Resources

Mortgage Programs

     Purchase
     Refinance

     Reverse Mortgages

Pre-Qualification Form

Annual Mortgage and Homeownership Checkup

Government Assistance
Counseling Agencies
Guide for Professionals

Settlement and After
Rules for Refinancing
Avoiding Predatory Loans
Avoiding Foreclosure

Contact Us             

Link to Manna, Inc

 Reverse Mortgages for Seniors

IMPORTANT FACTS TO KNOW

1. A reverse mortgage borrower must be 62 years old or over, own and live in their home as their primary residence, have a modest mortgage balance, and receive one and a half hours of HUD-approved reverse mortgage counseling.
    

2. A reverse mortgage eliminates the homeowner’s mortgage payment.

3. A reverse mortgage can pay homeowners in five different ways:

a) tenure: monthly payment for life
b) term: fixed payment for fixed term
c) line of credit
d) tenure with lifetime monthly payments plus line of credit
e) fixed term with fixed payments plus a line of credit

4. Credit and income of borrowers are not considered on a reverse mortgage. 
    

5. The balance owed can never exceed the value of the home. Homeowners pay off loan balance, accrued interest and fees only when they move, sell or pass away. 
    

6. As borrowers continue to live in their home, they benefit from its growing value.
    

7. The monthly income, a lump sum, or line of credit draws are not taxable.
    

8. Interest is generally not deductible as it is not paid till the loan is paid off when the borrower moves, sells, or passes away.  Consult your tax advisor.
    

9. All borrowers are required to receive reverse mortgage counseling from a HUD-approved counselor.
    

10. Allowable properties are attached and detached 1-4 family homes, HUD-approved condominiums, and even some manufactured homes.
     

11. The amount borrowed depends on the appraised value of the borrowers’ home, their age, and the “expected” interest rate. The amount of benefits received after settlement depends also on the balance of the existing mortgage and other debts to be paid at settlement. In general, the more valuable your home, the older you are, the lower the interest, the lower your mortgage balance and other debt, the more you will receive after closing.
     

12. Borrowers must pay their own property taxes and homeowner’s insurance.
     

13. The lender cannot take the homeowner’s home away as long as the borrowers live in their home and pay the taxes and insurance on their home.
     

14. An appraisal is required and may require repairs done by 6 months after settlement.

Call Frank Demarais 202 832-1845 x 209 or fdemarais@mannadc.org

Manna Mortgage  828 Evarts St NE  DC 20018